|Gardere Attorney Craig Florence quoted in Law360 article |
Longview Wins $95.5M, Huge Shale Tract From Directors
|September 10, 2012 11:56 pm|
Law360, Dallas (September 10, 2012, 8:34 PM ET) -- A Texas state judge has awarded Longview Energy Co. $95.5 million and the rights to more than 46,000 acres in the Eagle Ford Shale the company says is worth more than $500 million after a jury found two corporate directors had hijacked the opportunity to buy the land.
The judgment, filed Sept. 4 in Zavala County District Court against Riley-Huff Energy Group LLC, also gives Longview the right to all production revenues from the date of the jury verdict until the properties are actually transferred following any appeals — an amount likely to be about $5 million a month, according to Craig B. Florence of Gardere Wynne Sewell LLP, which represented the company with Watts Guerra Craft LLP. The defendants said they plan to appeal.
Florence said he thinks the ruling, based on Delaware law, will have "a major impact."
"If you serve on a board, you're not allowed to compromise your loyalties," Florence told Law360 on Monday. "You have to serve that board. If you act as an investor, you have to put the company first and put your personal interest second."
The case is Longview Energy Co. v. The Huff Energy Fund LP et al., case number 11-09-12583-ZCVAJA, in the District Court for the 365th Judicial District of Zavala County, Texas.
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